House votes to pay back $437 million to Alabama Trust Fund (updated)

Wetumpka Tea Party President Becky Gerritson, during a press conference on the Capitol steps Thursday, Sept. 13, 2012, urged people to vote no on a Sept. 18 referendum to transfer money from the Alabama Trust Fund to the state's General Fund.

MONTGOMERY, Alabama -- The House of Representatives voted this morning to repay $437 million taken from a savings account to shore up the state's ailing General Fund budget

“This is the first step in fulfilling that promise,” Love said. The House approved the bill on an 80-19 vote.

Alabama voters on Sept. 18 approved the transfer of $145.8 million-a-year for three years from the Alabama Trust Fund, a fund fueled by state royalties on oil and gas wells, to bail out the General Fund and avoid deep cuts to state agencies.

The bill by Love says that the funds "shall be repaid to the Alabama Trust Fund by no later than Sept. 30, 2026." The bill gives a schedule of the amount that shall be repaid each year.

The bill prompted a
two-hour long debate on the House floor as
Republicans pushed to pass the bill they named a top priority, and opponents questioned the plan.

A Democrat noted his child in preschool would be an adult by the time the money was paid back and questioned if future lawmakers could push back the payments.

Love acknowledged lawmakers could do that by passing another bill. But Love predicted lawmakers would face the wrath of voters if they did that.

Republicans took criticisms from some conservative groups for tapping the Trust Fund money to augment the budget. Speaker of the House Mike Hubbard, R-Auburn, vowed the repayment bill would be the first approved on the House floor this session.

“We will pay that back. We promised it before the vote on Sept. 18 that was overwhelmingly approved. Now, we have followed up on our promise,” Mike Hubbard said.

The bill now goes to the Alabama Senate.

Sen. Bryan Taylor, R-Prattville has similar legislation in the Alabama Senate. Taylor’s proposal also has language that appropriates the money

“Those payments will be made to the Trust Fund as if we are on an automatic draft,” Taylor said.

During the debate, lawmakers re-debated the Sept. 18 vote at times.

Rep. John Knight, D-Montgomery, suggested the state was using the ATF like a "credit card."

"Let the people know that we are borrowing money. We're doing the same thing that Washington is doing," Knight said.

Love disputed that assertion. He equated it to a family tapping a savings account due to an emergency.

Love praised the bill's passage.

“The fact that this bill passed the House on just the third legislative day clearly demonstrates that Republicans are following through on our promise to repay the money that was borrowed from the Alabama Trust Fund during the September referendum election,” Love said.